• TSX -118.90 to 12,853.13 (CP)
A solid loss that pushed the main index into correction territory amid rising fears that Greece will have to default on its debt and worries of slowing American economic conditions also contributing to a 10.3 per cent slide from the market's recent high in early March. Investors are deeply worried that a default in Greece could hurt banks elsewhere and set off a catastrophic financial chain reaction.
• DOW +64.25 to 11,961.52 There was discouraging data from the Philadelphia Fed's manufacturing index. It fell from plus 3.9 in May to minus 7.7 in June, which is the worst level in 31 months. Economists had forecast a reading of plus 5.5. The data was released one day after a similar report found that manufacturing was slowing sharply in the New York area. There was some good news on the U.S. labour front though as data showed that fewer Americans applied for unemployment benefits last week, though applications remain above levels consistent with a healthy economy.
• Dollar -.44c to 101.71c USD Traders sought the safe haven status of the U.S. dollar for a second day. The flight to safety pushed the Canadian dollar down.
• Oil +$.14 to $94.95USD per barrel
Oil prices recovered from earlier losses despite the rising greenback
• Gold +$3.70 to $1529.30 per ounce
• Canadian 5 yr bond yields markets -.04bps to 2.15. The spread (based on the MERIX 5 yr rate published rate of 3.79%) is at the top of the comfort zone at 1.64. The spread based on the quick close of 3.59% is close to the bottom of the comfort zone at 1.44.
